$11,500 Friday -- Our Free Picks Win Christmas!

$11,500 in one day!  

That's how much money our readers made by following the three trade ideas that we published FOR FREE in yesterday's morning post, where I re-posted a trade idea from our Live Member Chat Room (where we discuss trade ideas every single day, live during market hours) using our very simple system highlighted in "Using Stock Futures to Hedge Against Market Corrections" (from pretty much the same levels that we were using way back on July 27th, too!).  Yesterday, our levels were:

By the way, I'm liking TF short if they fail 1,150.  Lined up with 17,750 on YM, 2,075 on ES (also a short) and 4,685 on NQ – you know the rule – the other 3 have to be below and we stop out if one crosses over.  /NKD 19,500 also a short if they cross under (and the others are under).

The results?

That's $11,500 worth of gains on just 3 contracts made in less than 24 hours using our Futures hedges.  Merry F'ing Christmas to all!  (I'm sorry but that song cracks me up - it's from Donald Trump's last Christmas party)  That has been our goal for December - to help our readers make enough money for some cool Christmas gifts - like a 2016 Live Chat Membership at Philstockworld!  

In our chat this morning, for example, we flipped positive on the indexes as well as on Natural Gas Futures (/NG) at $1.73 and Oil Futures (/CL) at $36.  You can find those levels by checking out our morning Tweet but we don't do those very often - nor do we always make free picks - it's just Christmas and we can afford to be generous because we've had a great year (see our Portfolio Reviews).  

We don't always play the Futures, of course.   If you are a cheapskate reader (our loving term for non-subscribers who read our delayed posts), you just happen to get whatever we talk about in the morning which is, in fact, not even 1/4 of what we talk about at PSW during the average trading day.  We even have weekly Live Trading Webinars, where we demonstrate the fine points of our trading techniques (replay of Tuesday's is here).  

Philstockworld is above all else, an educational site, that teaches you how to trade stocks, options and Futures along with Portfolio Management Techniques to help you become a more profitable trader.  The profitable trade ideas we give out are just examples - our real goal is to teach you to identify your own opportunities so you won't be trapped forever chasing after someone else's trades.  KNOWLEDGE IS FREEDOM!   

We began this month (where our morning posts had over $50,000 worth of winning trade ideas) with this very prophetic prediction on December 2nd:

This is getting tedious

The S&P gets to 2,100 and we short ESFutures at 2,100 (with tight stops above the line) and Russell (TF) Futures below the 1,200 line and Nikkei (NKD) Futures below the 20,000 line and then, tomorrow or Friday, I'll tell you how much money we made shorting and you'll say "why do I never catch these great trade ideas" and I'll say it's because you're not patient enough to wait for the pattern to reset itself and just make the obvious play.  

This is the 11th time the S&P has been over 2,100 since May and, so far, it's been like a little money machine for us all year long on the short side.  I know this time may be different and the last 10 times may have been different too, which is why we stop out if we don't get confirmation from the other indexes that things are toppy but, when it works – it's good for $250, $500, $1,000+ PER CONTRACT in the Futures at $50 per point to the downside. 

For non-Futures players - you could, of course, have just shorted the S&P and picked up 4.7% on the 1% drop or, as we suggested in that morning post on the 2nd, you could have gone with the ultra-short on the S&P (SDS), which we were using as our primary hedge at $19 and SDS is $20.25 this morning - up 6.5% in 15 days, but our options spread was the best non-futures way to play and that idea was:

  • Sell 20 SDS March $19 puts for $1.25 ($2,500 credit) 
  • Buy 20 SDS Jan $18 calls for $1.20 ($2,400 debit)
  • Sell 20 SDS Jan $20 calls for $0.48 ($960 credit)

The net of that spread was a $1,060 credit (so you get paid $1,060 per set to protect your portfolio) but the brilliance of the play (if I do say so myself) is that we use our "Be the House - NOT the Gambler" system of selling more premium than we buy and that puts time firmly on our side, which hyper-charges our returns.  If SDS finishes above $20 (now $20.25), we not only keep the $1,060 we collected when we set up the spread but a bonus of $4,000 for a $5,060 gain (477%) and THAT, my friends, is how you hedge your portfolio from a 5% dip!  

Whether you learn these techniques from us or from someone else - I strongly suggest you do learn them and stop being a victim of the markets and start taking control of your portfolio and your future.  The market is getting more volatile, not less and 2016 is going to be a very tricky year to handle.  Many financial managers have never even experienced rate hikes during their careers - is that who you want to rely on (see Wednesday's post for my notes on that issue).  

Our Premium Memberships are still wait-listed and once we fill our Live Chat Room - the special offers will disappear due to the law of supply and demand.  Don't worry, we're not the only game in town - I'm sure lots of services have given you tens of thousands of Dollars worth of profitable picks this month that were published live to a national audience - any of those guys will do!  

Meanwhile, that /NG long trade idea at $1.73 we sent out earlier this morning are already at $1.80 and that's up $700 per contract - in just the time it took you to read this post (in fact, it's going up so fast that this image I just made is already old but $1.80 is where I'd take half the contracts off and set a tight stop).    

If that seems too easy - it is.  This is how the rich get richer - they have access to options and Futures derivatives that allow them to take advantage of moves that take place in the mornings and evenings while your broker's accounts are closed.  In fact, there's an Interactive Broker's commercial that points this out - where the woman is able to adjust her portfolio while having dinner while the other guy has to just watch the market pull down his portfolio's value because he can't trade.  

We simply do what little we can to help - I hope you've enjoyed our Free Holiday Trade Ideas - have yourself a very Merry Christmas!  

All the best, 

- Phil